Mexican housing finance company Metrofinanciera is expected to price a two-tranche $200 million deal in the cross-border market in the short-term, but, in the meantime, the issuer placed two transactions last Wednesday via sole lead IXE for a combined Ps1.5 billion ($138 million).
One residential mortgages transaction amounted to Ps500 million in inflation indexed units (UDIS) and priced at a real rate of 6.55%. The paper's legal term was 29.13 years and its average expected life was 11 years. Moody's Investors Service and Standard & Poor's rated the deal Aaa.mx' and mxAAA', respectively, on the national scale. The book was three times oversold, according to source familiar with the deal. This transaction marks Metrofinanciera's second offering backed by residential mortgages. The first came last December and was also sized around Ps500 million. So far, the originator has used up 20% of a Ps5 billion total domestic RMBS program.
Metrofinanciera's other deal was backed by bridge loans for construction, an asset class with more history than mortgages in the Mexican securitization market. The bridge loan-backed deal priced at 129 basis points over the 28-day TIIE interest rate and had a maturity of seven years. Moody's and S&P rated the transaction Aaa.mx' and mxAAA' on the national scale, respectively. The bid-to-offer ratio was 1.3 times, according to a source familiar with the deal. Both transactions went to institutional investors. Romo, Pailles & Guzman provided legal counsel for both transactions.
Meanwhile, originator Tuneles de Acapulco, has registered an asset-backed deal with local regulators. The size of the program is Ps800 million, but the prospectus does not provide a figure for the first issue. Fitch Ratings has given the deal a preliminary rating of AA+(mex)' on the national scale. The maturity of the first issue is planned at 17 years. The structuring agent is Corporativo en Finanzas while the placement agent will be Value. Pricing will be over the TIIE of up to 182 days. The originator holds a 25-year concession to operate the Acapulco Tunnel, granted by the state of Guerrero, in 1994. Part of the proceeds will go to refinance paper and pay off debt to state bank Banobras.
Meanwhile, on the cross-border front, Brazilian steelmaker Companhia Siderurgica Nacional priced a $250 million, 10-year transaction yielding 6.148%, according to published reports. The transaction was upsized from an initially planned $150 million. BNP Paribas was the sole lead.
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